Info: Capital gains tax (CGT) on ATED-related gains
From 6 April 2013 CGT applies to a non-natural person on the disposal of a chargeable interest in a single dwelling interest valued at more than £2m, and subject to ATED; in such a case, some or all of the gains or losses will be ‘ATED-related’.
The fraction of the gain which is ATED-related will typically be the number of days which were chargeable days for ATED purposes as a fraction of the total period of ownership post 6 April 2013.
The gain or loss will be computed on the basis the NNP had acquired the interest on 5 April 2013 for consideration equal to the market value at that date and any gain taxed at 28%. If one of the reliefs available for the ATED charge applies, there will be a reduction in or an absence of ATED-related gains or losses.
If there are no ATED related gains the normal rules for chargeable gains apply. If there are no ATED-related gains the normal rules for chargeable gains apply. Thus, currently if the company is non-resident it will not be subject to UK taxation on non-ATED related gains (but a Consultation Document on the proposal to impose CGT on non-resident owners of UK residential property has been published which could mean non-resident companies become subject to UK CGT).
26 May 2014